SPX Form a Hammer...Believe It or Not...

DJIA + 14.81, +0.18% SP500 - 1.47, -0.17% NASDAQ Comp. + 1.00, +0.06% Russell 2000 - 4.57, -0.94% Exchange NYSE NASD Advancing 1,019 883 Declining 1,971 1,801 Oil $60.14 -$2.79 Gold $909.30 -$19.80 SOX 250.94 -1.79 VIX 31.30 +0.45 The VIX moved up and did confirm the move down in the SPX on Wednesday. Strongest Sectors: XLV +0.93%...XLY +0.83%...XLP +0.43% Weakest Sectors: XLF -1.68%...XLU -0.44%...XLI -0.39% Six of nine sectors moved higher on Wednesday. Healthcare, Consumer Discretionary, Consumer Staples, Materials, Technology and Energy were stronger than SPX -0.17% Financial stocks stronger than XLF -1.68%: NTRS, CB, AOC, SCHW, AXP, TRV, SPG, BK, JPM, ZION, STT, AFL and MET. Tech stocks stronger than XLK +0.06%: ORCL, ADP, GOOG, AAPL, HPQ, EBAY, AMT, ADBE, IBM, EMC and MSFT. Sector Watch Up Trending: Horizontal Breakout: XLB, XLK, XLY Sideways: XLE, XLV, XLF, XLP, XLI, XLU Down Trending: SPX Key resistance levels: 883 = 200 DMA 910 = 50 DMA 920 = horizontal end of May high 930 = horizontal 944 – 956 = January/June horizontal 962 = 161.8% Fib extension Key support levels: 870 -875 = horizontal The SPX, Nasdaq and DJIA all formed a hammer candle pattern as each formed an intraday double bottom around 12:30 and 2:30 ET. The DJIA and Nasdaq each closed slightly positive while the SPX closed slightly negative. The SPX fell to 870 in its 875 horizontal support zone where buyers stepped in moving the SPX to an 879 close. Today is the low day. A break above the high of the low day is a potential entry signal for short term traders. Watch for a continuation of the today's support bounce and potential entry signals. Stocks to Watch on Thursday Leading Stocks Holding Above 30 DMA PWRD, FUQI, K, CPLA, BDX, STRA, ACN, PSYS, ESRX, MHS, SLGN, AMED, HLF, FAZ, ALGT, PPD Moving Above 30 DMA = 3 AMX, DLTR, ORCL Moving Below 30 DMA = 2 BKC, GILD Staying Below 30 DMA AAPL, APEI, BYI, CTSH, DECK, DV, GMCR, NFLX, NTLS, USD, VPRT, BIDU, HDB, SYNA, CBST, CHL, ESI, GES, GXDX, ICE, JCOM, JW.A, PCLN, PETS, TDG, WCG, WRC, GR. JOYG, MCD, TRLG, AMZN, MYGN, PWR, X, BAP, GPRO, JEC, NIHD, SNHY, UYG, BLUD, RBN, AFAM, ATW, BIIB, FLS, VAR, PCP, SWN, MUR, RIMM, SPWRA, CAM, CLB, MOS, EBAY, FAS, MON, RCI, SNA, URE, EZPW, WAB, FSLR, WMT, DLB, JOSB, HANS, GME Intermediate Term Market Trend: Neutral Short Term Market Trend: Down